New Page 2

Introduction

www.fcx.com

Welcome to the Freeport-McMoRan Copper & Gold Inc.'s
Working Toward Sustainable Development Report
2004 Economic, Social and Environmental Report

	Cover photo: The operations of PT Freeport Indonesia are about more than the copper and gold in the high-grade ore sample that provides the background for our cover -- they are also about people, our employees and neighbors, who are the subject of this report.
	Inside Cover photo: Among the many ways PT Freeport Indonesia celebrates and helps to preserve the unique traditions of the Papuan people is through support for cultural events like the Kamoro Arts and Culture festival shown here.

Making Progress
To Our Stakeholders

As our world shrinks with modern transportation and communications, and as the lives of all people become increasingly intertwined by economic globalization, the need for a sustainable society in all communities around the world becomes increasingly important. It is no longer sufficient for an individual, corporation or government to provide for its own needs - they must take into account the needs of others and tailor their own activities in a responsible fashion to foster the greatest good. This is the responsibility of each person, every company and all nations as we enter the 21st Century.

Our Company, Freeport-McMoRan Copper & Gold Inc., is a major producer of copper from mineral ore containing significant amounts of gold, which we sell as a by-product. The world requires the copper we produce to sustain and expand economies and for the development of infrastructure in developing nations. The copper concentrate from our mining complex in Papua, Indonesia, and the copper products from our wholly owned smelter in Spain and our 25-percent-owned smelter in Indonesia are essential for the communications, transportation, electronics and other industries on which the world relies. We recognize that this economic need requires balance with society's social and environmental needs so that, in meeting the demands of the present generation, we do not impair the lives of future generations.

At Freeport-McMoRan Copper & Gold Inc., we embrace this responsibility partly because it is our duty as a global citizen, but also because it is prudent business practice. We are mining one of the world's largest mineral deposits and our planning horizon is decades into the future. Working toward sustainable development through our operations and programs helps ensure a healthy environment and communities in our areas of operation, which is vital to our future success.

Our mining operations inherently impact the environment and nearby communities. Working toward sustainability in our operations, we commit to minimizing, mitigating and rehabilitating environmental impacts and to maximizing positive economic and social development results. These are continuous efforts that seek constant improvement, conducted in partnership with governments and local communities where we operate.

Demonstrating the strength of our commitment, we invested $72.7 million in sustainable development programs during 2004, including $29.2 million on environmental management and $43.5 million on social development. Our world-class mining operations and long-lived, low-cost ore reserves ensure a long project life in Papua. However, the social, cultural and environmental projects we establish lay the groundwork for a sustainable society for the benefit of future generations extending far beyond the completion of mining activities many years from now.

James R. Moffett
Chairman of the Board (left)

Richard C. Adkerson
President and Chief Executive Officer (right)

It is this continuous effort to create sustainable development that is described in this annual report, which contains specific information about our programs. Our projects and programs are being implemented in partnership with the Government of Indonesia, the Papuan provincial authorities and the Papuan people. We have worked diligently to gain the trust of our Papuan neighbors and to ensure that our activities contribute toward the goal of sustainability. As we construct infrastructure projects to meet current needs, our ongoing dialogue with Papuan leaders and our programs on education, training, institution-building and small business development are vitally important to providing for the future economic and social sustainability of the communities affected by our business.

A key milestone for us was the Memorandum of Understanding we entered into in 2000 with leaders of the Amungme and Kamoro tribes, the traditional residents of our operations area. This agreement covered socioeconomic resources, human rights, land rights and environmental rights and was designed to improve the quality of life of the local communities and to ensure that they benefit from our operations.

As Thom Beanal, the Amungme leader who signed the agreement, said at the time, "We have built this agreement like a good house. We have laid all of the planks carefully and straight so that we can all live in it in peace and prosperity for a long time to come."

We are committed to ensuring that we fulfill our commitments under the Memorandum of Understanding and that we continue to build on our programs as we work cooperatively toward a sustainable future.

Respectfully yours,

James R. Moffett Chairman of the Board March 9, 2005	Richard C. Adkerson President and Chief Executive Officer